HKEx: Exchange Publishes Guidance Letter For Long Suspended Companies And Revises Its Monthly Prolonged Suspension Status Report
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today (Friday) issued a guidance letter for long suspended companies. The letter sets out the current practice and rationale for the continued suspension of companies and discusses the criteria for resumption of these long suspended companies.
In conjunction with the guidance letter, the Exchange has also revised its monthly prolonged suspension status report to summarise, for each long suspended company, the conditions imposed by the Exchange for resumption, major developments and outstanding issues. This new format should improve the readability of the report and provide a quick summary of information from these companies’ published announcements.
“The Exchange reviews its rules and practices from time to time. Following a recent review of the policy on handling long suspended companies, we concluded that the current Rules are appropriate for the time being.” said David Graham, HKEx’s Chief Regulatory Officer and Head of Listing. "The guidance letter provides transparency to the market on our approach to handling long suspended companies, and facilitates investors’ understanding of the reasons for continued suspension and circumstances where these companies may resume trading or be delisted. The guidance letter also sets out the new administrative requirements for the submission of resumption proposals, with a view towards improving the process of vetting these proposals." Mr. Graham added.